Brokered deal has C$3.75 million greenshoe; proceeds fund exploration
By Devika Patel
Knoxville, Tenn., Jan. 25 - Brownstone Energy Inc. said it has priced a private placement of units. The deal was announced Monday for C$25 million and has a 15%greenshoe for C$3.75 million.
The company will sell 26,315,790 units at C$0.95 apiece. Each unit consists of one common share and one half-share warrant, with each whole warrant exercisable at C$1.25 for 18 months. The strike price reflects a 19.05% premium to the Feb. 14 closing share price of C$1.05.
The deal will be conducted on an overnight-marketed basis by a syndicate of underwriters co-led by Jennings Capital Inc. and Dundee Securities Ltd.
Settlement is expected March 9.
Proceeds will be used for exploration and development in Colombia and off-shore Israel, working capital and general corporate purposes.
Toronto-based Brownstone Energy is an energy-focused investment company.
| Issuer: | Brownstone Energy Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$25 million
|
| Greenshoe: | 15% or C$3.75 million
|
| Units: | 26,315,790
|
| Price: | C$0.95
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$1.25
|
| Agents: | Jennings Capital Inc. and Dundee Securities Ltd. (co-leads)
|
| Announcement date: | Feb. 14
|
| Pricing date: | Feb. 15
|
| Settlement date: | March 9
|
| Stock symbol: | TSX Venture: BWN
|
| Stock price: | C$1.05 at close Feb. 14
|
| Market capitalization: | C$85.14 million
|
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